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ICO Market Collapses In First Quarter Of 2019 — WSJ

15:15 01/04/2019
ICO Market Declines 58 Times In Q1 2019

Crypto projects managed to raise only $118 million through initial coin offerings over the first quarter of this year. For comparison, in Q1 2018, token sales attracted $6.9 billion of investments, which is 58 times more. The Wall Street Journal reports this, stating the death of the ICO market.


Among the main reasons for ICO collapse, the magazine cites the global recession of the crypto market, as well as the fear of investors — they are repelled by regulators' measures against illegal projects.


It is noted that only 45% out of 2500 projects that the TokenData service has been tracking since 2017 were able to raise funds successfully. However, only 15% of tokens included in the market turnover are traded at or above the initial price.


Joshua Ashley Klayman, a lawyer for blockchain and cryptocurrency issues, commented on this data. She stated that ICOs as such can disappear, but the crypto market will not. Moreover, another type of token sales has been gaining popularity recently — security token offerings, or STOs.


Lately, the US Securities and Exchange Commission (SEC) caught several startups in conducting unregistered ICOs. The Airfox and Paragon projects had to pay a $250,000 fine. Besides, by the SEC's decision, they will be obliged to return money to investors and register their tokens under the legislation on securities.


Interestingly, the technology startup Gladius Network voluntarily admitted selling unregistered assets to the SEC, after which the regulator decided not to charge a fine.


Earlier an announcement of the sale of the company that failed an ICO appeared on eBay.

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